Business Technology Roundtable

The proof-positive business impact from managed cloud services deployment, including the numerous associated productivity benefits and anticipated cost-savings, have pushed cloud computing well into the mainstream during 2011. As we move into 2012, International Data Corporation ( IDC ) predicts that this evolution will continue as more users test the growing capabilities of the public cloud services that are already available. However, by 2015, IDC envisions a very different scenario -- one where cloud services will become commonplace, thereby forcing significant changes in the ongoing adoption of progressive business technology practices throughout legacy IT organizations. "In the next 24 months, the 'cloud' as a marketing label will cease to exist, as the success of cloud services will mean that it will permeate the sourcing strategies of the CIO and business unit manager alike," says Chris Morris, Lead Analyst for Cloud Services at IDC Asia/Pacific. He ad...

As 2009 comes to a close, a recent editorial in CIO magazine sums-up a nagging issue -- "Despite the emergence of improved IT management tools over the past decade, CIOs continue to grapple with the same IT challenges they dealt with five and even 10 years ago. Which can make a CEO wonder: when are we going to get there?" Forrester Research believes that CIOs have typically run "the tech factory" for their firms -- responding to business needs with solutions and operations from both internal and external sources. These IT leaders have pursued operational maturity to optimize solution delivery. Forrester says that CIOs won't ever get away from delivering on operational maturity. But as technology becomes pervasive -- more stable, standardized, and available as a business-centric service -- it's inevitable that business executives will take greater direct control over technology investment decisions. Forrester calls this evolutionary transition the shift from...

The accelerating Organic IT phenomenon is being driven by executive frustration that today's business technology demands are not being fully met by their internal support organization. Some IT teams, however, have taken decisive action to free-up time to become more responsive to their savvy user's requests for new capabilities. Perhaps that's a key leading indicator why remote managed services have emerged as a rare growth area within this tough economic environment. Clearly, proactively increasing business process agility and cutting operational costs has never been more popular. As a result, annual spending on remote managed IT services by the North American Small and Medium Business (SMB) sector is expected to increase 3.3 times in the next five years. That represents a compounded annual growth rate of 28 percent, according to the latest market study by AMI-Partners . Extracting Value from Business Technology "While SMBs have been steadily increasing their relian...

Security breaches or other unexpected interruptions can happen anytime to anyone -- whether you are a large enterprise or a small business. Fully maintaining communication network security is a demanding responsibility -- and typically not the best use of your limited IT resources, that would be better applied to delivering incremental new business technology benefits to your organization. Fortunately, there are alternatives to a do-it-yourself comprehensive security solution. Skilled managed service providers continue to enhance their network security offerings. AT&T announced the availability of Security Event and Threat Analysis and Security Device Management, two new managed security services available for businesses of all sizes. Customized to Your Unique Business Needs The services enable you to engage AT&T security professionals selectively and simply to provide customized security support. Services range from security event analysis and threat management analysis to ...

New York-based JetBlue Airways created an airline focused on value, service and style. They've proven to be a trailblazer in the U.S. airline industry. They're also a communication technology early-adopter. JetBlue introduced complimentary in-flight e-mail and instant messaging services on their aircraft -- a first among U.S. domestic airlines. However, their core competency is centered upon air travel. They out-task the rest to service providers, wherever possible. JetBlue signed a new, six-year strategic agreement with Verizon Business to manage the airline's information technology ( IT) data center and communications network needs, as well as provide security and IT consulting services. Built on an IP Network Foundation Verizon Business will design and manage the transition of JetBlue's existing systems to a new global IT network infrastructure. The newly built Internet-protocol-based (IP) voice and data network will support state-of-the-art airport kiosks, wireles...

Verizon Business introduced an on-demand, cloud-based Computing as a Service (CaaS) solution -- designed to meet the stringent security and performance requirements of their enterprise customers. This new offering helps businesses take advantage of cloud (IP-based) computing to more efficiently and securely manage IT computing resources -- server, network and storage -- to meet day-to-day business demands. This CaaS solution, which leverages Verizon's global IP infrastructure and data centers, enables companies to use a Web-based portal to employ computing resources in the quantities and duration dictated by their own business needs. As a result, businesses pay for the resources used and avoid having to build out for peak capacity requirements by buying new equipment and adding IT or networking staff. Designed for mid-to-large-sized businesses, CaaS is ideal for new development projects, major events and migrations so that organization can easily and quickly shift IT resources as ...

Non-profit organizations share many of the same communication challenges as other businesses. Their budgetary pressures can also create some unique situations, especially when you consider the scale of their ongoing outreach. The Greater Illinois Chapter is one of over seventy Alzheimer's Association chapters serving communities across the United States. Currently, the Illinois chapter serves over half a million residents affected by the disease. They're active in more than 60 counties in Illinois. Since 1980, the non-profit organization has provided information and support, as well as family services, for those affected by the disease. Staying connected to their numerous constituents, and the overall community, is essential. Streamlining Communication Processes As the chapter grew, they needed big business telecom functionality -- only on a non-profit budget. In the preparation to move into a new facility, the decision was made to replace their phone system. Managing six offi...

In the online network connected business environment, security is more critical -- and also more complex. Today, network security requires constant monitoring and management. All businesses now experience vulnerability on an infrastructure that often extends to many locations. Managed service providers can create a comprehensive security offering that enables you to maintain the level of protection and control you require. They can manage some or all of your network security functions -- giving you access to their dedicated manpower, 24-hour safeguarding, as well as routine maintenance and management of disaster recovery. Finding the right security solution for your organization begins with establishing your priorities and becoming informed about alternatives. The following describes typical managed security service offerings, and how you can apply them. Managed Firewall Firewalls protect internal and external networks by restricting the types of network protocols and traffic allowed ...

Managed services provider Verizon Business has added an interesting twist to its security toolbox. Traditionally, managed security services are tactical: they monitor a network for potential attacks, using virus signatures and other definitions. Earlier this month, Verizon upgraded its customers' security capabilities with what it calls its " Risk-Correlation Service ," designed to add strategic insight to security. The RCS works with vulnerability scans -- either those it does for customers or those from vendors such as McAfee, Qualys, and others -- to determine where potential vulnerabilities exist. The service also documents your system to create a map of devices and the business processes that run on them. "It marries threat information with vulnerability information," says Jonathan Nguyen-Duy, Director of Product Management for Verizon. Calculating Risks The result is a Web-based scorecard that shows Verizon customers not only where potential problems exist...

Many traditional businesses maintain separate networks for data and voice communication. With a converged voice-and-data network, companies can often reduce costs and gain significant productivity benefits. However, the cost of implementing and managing the solution internally can be prohibitive. A more affordable option is to out-task IP communications to a managed services provider . This arrangement avoids initial CapEx and provides economies of scale -- because the service provider already owns the required infrastructure. You can choose from several options for managed IP communications services. The following describes typical managed IP communications service offerings, and how you can apply them. Business IP Telephony Services This includes both subscriber and group calling services. Companies that need sophisticated PBX features can use a managed IP telephony service. Many small businesses can also receive the functionality that they require with a managed IP telephony soluti...

Business leaders are still upbeat about the benefits of technology adoption. It's key to their market penetration, central to competitive differentiation, and vital to their supply chain and distribution strategies. However, according to Forrester Research, they are less than satisfied with their own IT organization's contributions. In fact, reducing the cost of operations is believed to be one of the few attributes where expectations are aligned. Members of the Forrester Leadership Boards (FLB) CIO Group recently discussed this challenge. Forrester presented results from their business technology survey of 600 executive leaders. The study uncovered the following significant gaps: IT teams rarely are aligned around key business priorities. When asked to rank business drivers by their importance to the firm's technology strategies, business executives identified customers, productivity, and costs as the most important themes. But, when asked to rate their IT organization ef...

I received an email the other day congratulating me on a column I wrote for NetworkWorld nearly three years ago entitled, "Why Managed Services Fail." The 'shelf-life' of web content always amazes me, but it is gratifying to have people stumble across my past writings and still find them timely. What struck me as I revisited this 2005 column was how many of my points were still true, "...Almost every supplier and service provider I talk to admits that selling managed services has been harder than expected." "The first problem these managed service providers face is packaging." "The second issue is pricing." "The third challenge is positioning these services properly." "But the biggest obstacle to selling managed services is poor sales skills." Sound familiar? Although industry research clearly shows that customers are becoming more receptive towards managed services and the economy is even driving an increasing numbe...

All business has become global. Companies of any size can now market products and services worldwide over the Internet. At the same time, competition has intensified because customers can investigate global competitors with ease. To compete effectively in the global networked economy, companies need new capabilities: Global procurement and sales 24 hours a day. Integrated internal and external business processes. Up-to-the-minute access to sales, order processing, production, and other business critical information required for informed decision making. Flexible processes that can adapt dynamically to changes in the business climate. The application of Business Technology is now a primary enabler of strategic advantage. However, chief executives have become impatient, as their companies have failed to keep pace with these advances. There are alternatives, for those who choose to act. The managed services model can be applied to accelerate this much needed change. Review the following ...

Our prior commentary on SaaS and Managed Services: Big Service Providers Plug In does a good job pointing out how various service providers are attempting to deliver a widening array of Software-as-a-Service (SaaS) solutions and managed services. This trend is being driven by two major forces. First, the commodization of traditional transport services. Second, the shift in customer attitudes regarding IT management. Service providers can no longer differentiate themselves based on the quality of their transport services. As a consequence, service pricing, customer loyalty and profitability of this mainstay business continue to decline. To compensate for this erosion of their traditional transport business, service providers are seeking to deliver a new generation of value-added services which can give them greater 'stickiness' with their customers. It's a Win-Win Scenario At the same time, customers are seeking to offload, or out-task, a broader assortment of IT managemen...

My colleague, Joe Panettieri, reports that Dell has won its largest managed services agreement ever with the state of Georgia. This contract illustrates how Dell, and other technology vendors, are shifting their go-to-market strategies to respond to customers' changing IT management needs. Anyone who follows the technology industry knows that Dell has been struggling to keep pace with HP when it comes to computer sales. What few casual observers have recognized is how Dell has amassed a new set of remote management capabilities via a series of acquistions over the past year and a half. Why Managed Services Matter During that time, Dell has acquired SilverBack Technologies, Everdream, EqualLogic and MessageOne to serve as the foundation for a new portfolio of Software-as-a-Service (SaaS) and managed service capabilities . Dell understands that it will have a difficult time outpacing HP and other technology vendors on the strength of its products alone as laptops, desktops and serve...

Are you puzzled about how to choose the best-fit managed service solution for your particular business needs? As a basic guide, the following are three typical high-level scenarios for deploying managed network services . Scenario 1: Customer Owns Network and Shares Management Responsibility Companies that already have an internal IP network can continue to manage it while out-tasking the management of onsite equipment -- usually known as customer-premises equipment (CPE), used for the managed service (see Figure 1). The Roles and Responsibilities are as follows: Managed service provider -- Sets up, maintains, and administers the equipment needed for the managed service, including company-owned equipment such as servers. Company -- Managed service customer maintains and administers its internal network. Scenario 2: Service Provider Owns the CPE; Customer Can Share Equipment Management with Service Provider Some companies do not own a LAN, either because the location is new or the compa...

According to a recent McKinsey & Company report, their research results demonstrated that the potential for managing servers and other IT resources remotely is essentially underutilized. However, changes in the current business environment will increase the adoption of this approach. Plato, a wise Greek philosopher, wrote about how "necessity is the mother of invention." Certainly, that perspective is equally valid today. The motivation for utilizing the resources of a service provider can be considerable. A case in point: Fortune 50 companies, with budgets of $2 billion, can save as much as $500 million of their IT infrastructure budgets. How, you may ask? Apparently, it's mostly from reducing fully-loaded labor costs. Evaluation of IT Assets and Liabilities McKinsey surveyed 141 CIOs at multinational corporations, and 34 percent of them said that they anticipate utilizing some infrastructure management services over the next three years -- which is an increase from...

Gartner analysts recently identified the top ten key technologies -- and related trends -- that they believe will be strategic for mainstream organizations. The analysts presented their findings during Gartner's Symposium and ITxpo . Gartner defines a strategic technology as having the potential for significant impact on the enterprise -- within the next three years. Factors for significant impact include a high potential for disruption to IT or the business , the need for a major financial investment, or the risk of being late to adopt. The technologies were chosen because they could affect an organization's long-term plans, programs and initiatives. They are deemed strategic because they’ve matured to broad market use, or because they enable strategic advantage from early adoption . Gartner's top 10 strategic technologies for 2009 include: Virtualization; Cloud Computing; Servers (beyond blades); Web-Oriented Architectures; Enterprise Mash-ups; Specialized Systems; Social...

Because of the expanding growth and complexity of communication networking, and the risks presented by a new breed of skillful hackers, serious security threats are an unfortunate certainty within the highly interconnected office environment of today. These threats are very real and the results are costly to those businesses that have been affected. Apparently, the victims aren't entirely at random, which is often assumed to be the case. According to the 2007 CSI Computer Crime and Security Survey , almost one-fifth (18 percent) of those respondents who suffered one or more kinds of security incident further said they had suffered a "targeted attack" -- defined as a malware attack aimed exclusively at their organization or at organizations within a small subset of the general population. Beyond the Virus Threat Moreover, financial fraud overtook virus attacks as the source of the greatest financial losses. Virus losses, which had been the leading cause of loss for seven s...

The trend of globalization, and the need to connect remote employees, now touches nearly every segment of American business -- regardless of organization size or industry. Here’s a case in point. Founded in January 2001, Illinois-based Kirix began as a data analysis specialist for the recovery audit industry. They've done a lot of data analysis and software development work in that time and have had a particular specialty in identifying duplicate payments and other overpayment errors in large corporate accounting systems. More recently, by generalizing their tool set and incorporating Web connectivity into their software, they apply that analytical firepower to all kinds of data -- regardless of where it is located -- even data that's on the Web. The Borderless Communication Challenge Benjamin Williams, one of the company founders, had been planning to relocate to Germany. As a valuable asset to their corporation, Kirix wanted to retain his services, but wasn't sure how th...